Revolution Beauty reports jump in sales amid spat with Boohoo
Revolution Beauty has reported a 60% uplift in sales in the first three months of its financial year as it updated shareholders on trading in light of the requisition notice by Boohoo.
The make-up brand said gross margins were 48.2% in the period compared to 41.7% at the corresponding time last year. Meanwhile EBITDA at constant currency was £3.5 million.
Bob Holt, Revolution Beauty chief executive, said: “The excellent trading performance in the first quarter of the year is testament to the quality of our offer and the strength of our leadership team, and shows that we are delivering on our global retailer strategy.
“This has been achieved at the same time as fixing the historical issues overseen by previous management and putting in place improved cost controls and processes across the business.”
Revolution Beauty shares have been suspended September after auditors failed to complete its results on time. This led to the group calling in a law firm and forensic accountants to conduct an independent investigation after auditors raised concerns over its FY22 accounts. Today the company said it is on the cusp of having trading in its shares on AIM restored.
Speaking of shareholder Boohoo’s call for an emergency meeting to make changes to the Revolution Beauty board and for a switch to growth, Revolution Beauty said: “The company hopes that shareholders are reassured that the current board is similarly minded and that growth is being delivered without one shareholder taking control of the board at the expense of the interests of other shareholders.
“It is also noteworthy that the group’s trading performance has been delivered at the same time as rectifying the significant historical issues that occurred under previous management.”
The company also said that Boohoo’s proposed candidates for the Revolution Beauty board, Alistair McGeorge and Neil Catto, “do not have the relevant experience in running a business in the beauty sector, nor in supplying a store estate and beauty product range which is focussed on the high street”.
It added: “The board believes that Boohoo’s hostile requisition is value-destructive, opportunistic and self-serving, as well as not being in the interests of the company’s shareholders as a whole.”
Yesterday, Boohoo announced that it intended to include Rachel Horsefield, the former chief executive of beauty at THG, in the future independent board appointment process of Revolution Beauty.
In its statement today, Revolution Beauty said: “The company reminds shareholders that, in Jeremy Schwartz, they already have a director with a wealth of experience in the beauty sector.
“Jeremy spent 12 years at L’Oréal, including as managing director in the UK responsible for all consumer, luxury, salon and active cosmetics divisions, and five years as chairman and CEO of The Body Shop, which has some 3,000 stores in 70 countries. Therefore, Ms Horsefield’s proposed addition to the board is not required.”
